More on Futures trading
A Future is a contractual agreement to buy or sell a particular commodity or financial instrument at a pre-determined price on a specific date in the future.
Futures contracts can derive from a variety of assets, from traditional commodities like corn, wheat, and orange juice to different asset classes, like government bonds, interest rates, energies and stock indices. Futures contracts detail the quality and the quantity of the underlying asset; they are standardised to facilitate trading on a Futures exchange.
Futures are highly liquid financial instruments, meaning individuals can trade on tight spreads. The transaction costs for them are low, and their pricing is transparent due to the level of specificity found in futures contracts and the regulations imposed by the various exchanges. There is no physical delivery with Saxo Bank.
Volume-based commissions
Online futures are traded on volume-based commissions, where the more traded the less cost incurred. For large monthly trading volumes, the price can drop to as little as USD 0.30 per contract.